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| Japanese-style management approach, long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work. |
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| Project Quality Dimensions |
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Performance Features Reliability Conformance
Durability Serviceability Aesthetics Perceived Quality |
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| Service Quality Dimensions |
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Tangibles Service Reliability Responsiveness Assurance Empathy |
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Concept referring to the participation of all functional areas of the firm into product design.
get everyone involved to make high quality at low costs. |
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American statistician credited with improving production in WWII.
"A loyal customer is a profitable customer."
Created the 14 points for MGMT.
Create a constancy of purpose towards improve,et of product service with the aim to become competitive, stay in business, and provide jobs. |
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Shewart/Deming Wheel.
Plan Do Check Act |
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Low quality caused by people Loss of work ethic Some defects acceptable Inspect for product problems Higher quality means higher costs |
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Low quality caused by management of people Need for good management Zero defects is the goal Inspect for process problems Higher quality means higher profits |
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American industrial engineer and philanthropist.
a business and industrial quality "guru," is known worldwide as one of the most important 20th century thinkers in quality management. |
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| 80/20 rule, majority of quality problems are the result of relatively few issues. (juran) |
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was a businessman and author who contributed to management theory and quality management practices.
initiated the Zero Defects program at the Martin Company
As the quality control manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs. |
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Japanese University professor and influential quality management innovator
Ishikawa or cause and effect diagram (also known as Fishbone Diagram) that are used in the analysis of industrial process. He is considered one of the Quality Gurus. |
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drafted into the Astronomical Department of the Navigation Institute of the Imperial Japanese Navy.
joined the Ministry of Public Health and Welfare where he came under the influence of eminent statistician Matosaburo Masuyama who kindled his interest in design of experiments
The Taguchi Loss function |
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| graph used to get the ideal amount, too little or too much loses profits. (12 oz drink) |
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| failures occur largely because components, within tolerance but not precisely on specification, don’t fit perfectly and cause excessive wear. |
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American quality control expert
First Ph. D. in Quality (MIT, 1950s)
Authored Total Quality Control
Credited with initializing the field of Total Quality Management (as differentiated from to Deming’s Statistical Quality Control) |
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Japanese industrial engineer who distinguished himself as one of the world’s leading experts on manufacturing practices and The Toyota Production System
Poka-yoke (failsafing) – Rather than relying entirely on statistical control techniques, create a method that will not permit a part to be made that is not with tolerance. Made numerous contributions to just-in-time practice. Has half a dozen books translated into English including Zero Quality Control. |
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| The Malcolm Baldridge National Quality Award |
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Administered by the National Institute of Standards and Technology, Department of Commerce. Established 1989. Six categories, 2 awards per category per year (All 12 have never been awarded in a single year): Small Business (less than 500 employees) Large Manufacturers Service Sector Education Hospitals Non profits |
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| Baldridge Award categories |
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Leadership 120 Strategic Planning 85 Customer and Market Focus 85 Measurement, Analysis and Knowledge Management 90 Human Resource Focus 85 Process Management 85 Business Results 450 |
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| Japanese Quality award. Oldest quality prize. |
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Policy Organization and operations Collecting useful Information Analysis Planning for the Future
Education and training Quality assurance Quality effects Standardization Control |
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| Quality Management/Process control stages |
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| (1) no quality management, (2) inspection, and (3) process control. |
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| Myth: Quality work takes more time |
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| Reality: Quality work requires a good and structured process, and then it takes less time. For example, working with a complete kit in development, sales, or production processes requires fewer cycles in the process and naturally a smaller time investment and shorter cycle time. |
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| Myth: Quality costs more money |
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| Reality: High-quality work and a quality process cost less money because they result in less rework and fewer cycles, and they reduce the garbage plant. Thus, quality costs less and contributes to higher profit. Many customers are willing to pay a premium for quality services or products. |
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| Myth: It is not possible to provide a quality service or quality product in large quantities. |
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| Reality: It is possible to provide quality service and produce a quality product even in large quantities if the process is good, consistent, and reliable…and a quality process of selecting, training, and controlling the employees. |
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quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts
more cost-reduction-oriented than traditional continuous improvement
creates champions, black belts, green belts, and in some situations, yellow belts |
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| Work with black belts to identify possible projects |
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| Work with and train new black belts |
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| Committed full time to completing cost-reduction projects |
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| Trained in basic quality tools |
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Define Measure Analyze Improve Control |
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Develop the business case Project evaluation Pareto analysis Project definition |
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| Reasons for Six-Sigma failure: |
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Lack of leadership by champions Misunderstood roles and responsibility Lack of appropriate culture for improvement Resistance to change and the Six-Sigma structure Faulty strategies for deployment Lack of data |
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All work occurs in a system of interconnected processes All process have variation (The amount of variation tends to be underestimated) Understanding variation and reducing variation are important keys to success |
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| drawn from a production or service process in order to ask the question, Is the process in control (i.e. conforming to specifications). Because we take a sample rather than a complete census, it is possible that we can draw an unrepresentative sample and reach the wrong conclusion |
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Centered around the mean Consistent amount of dispersion This type of variation cannot be controlled….The statistical tools discussed in this chapter are not designed to correct random variation |
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“Special Causes” Results from some uncommon event Dispersion and mean of the process are changing Process that is not repeatable Find a bad symptom, then “ask why 5 times” to get to the underlying core problem |
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| a continuous measurement such as weight, height, or volume. |
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| either counted or is a yes/no decision. |
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| procedure for developing process charts |
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Identify critical operations in the process
Identify critical product characteristics
Determine whether the critical product characteristic is a variable or an attribute
Select the appropriate statistical process control chart
Establish the control limits and use the chart to continually monitor the critical parameter and (offline) improve the process using the information obtained by monitoring the process
Update the mean as well as the upper and lower control limits as needed when changes made to the process change the population parameters. |
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| Tests for process control |
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One or more points fall outside Zone A
Two of any three points fall outside the Zone B on the same side of the mean.
Four of any consecutive five points fall outside the Zone C on the same side of the mean.
Seven consecutive intervals either increase or decrease
Eight or more consecutive points fall on the same side of the center line
Fifteen consecutive points lie within Zone C
Any obvious nonrandom pattern occurs. |
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Continuous, incremental, improvement is achieved by having everyone participate in the Continuous Improvement effort. |
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From raw material to final customer, deliver each item just as needed.
Drive continuous improvement by striving for faster flow of goods, which causes problems and forces one to deal with them. |
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The idea for JIT came to Toyota VP Taichi Ohno while visiting a U.S. supermarket.
Shigeo Shingo made JIT possible at Toyota by dramatically lowering setup times. Shingo is known today for SMED (Single Minute Exchange of Dies). |
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| American Production and Inventory Control Society (APICS) |
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| Brought JIT to the USA with their Zero Inventory Crusade and by the big three automobile manufacturers, who adopted JIT and required their suppliers to adopt it. |
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| managers are educated in the nature of the system they want implemented, actively involved in bringing about the implementation, and interested and concerned about the impact the system will have on workers. |
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| Cards, standardized containers, or even a square painted on the floor may be used to signal to a worker that it is time for him or her to produce one container of parts |
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Problems can be covered up by more inventory but JIT seeks to reduce inventory to expose problems and get rid of them.
Inventory is water, problems are rocks. |
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| the time between finishing the last part of one order and starting the first part of the next. |
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| Obsolete Measures of Performance |
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Equipment utilization
Worker efficiency
Individual incentives
Costing based on direct labor hours |
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Rule I: Work only as needed in terms of time, quantity, and specifications.
Rule II: Work in small, appropriate, and smart batches.
Rule III: Avoid waste and activities that do not add value to the organization. |
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| The number of units, number of work hours, or frequency of transfer between one work station and another. |
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| Process (working or production) batch |
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| The number of units (or labor hours) that are worked on continuously at a workstation. This is the amount of work between one setup and the next. |
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Overproduction Waiting times Unnecessary conveyance Rejected products in processing Surplus stock |
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| Controlling bad multitasking |
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Teach and explain Apply strict control using tactical gating Measure, follow up, can control the number of tasks assigned to each worker |
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| early warnings given to resource required to enter in the CC at a later time. |
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| Project Completion Buffer |
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| Protects against the CC itself, 1/2 the length of the CC. |
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| Project Development life cycle |
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objectives required definitions design (ext. and int.) Construction (Most time and resources) System tests implementation/maintenance |
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| to establish agreement that all required work for that Phase has been done properly, and that the organization supports a decision for the project to proceed to the next phase, or conversely, to terminate the project. |
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| Quantitative Objectives for success |
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1) Did the end product meet the design specifications set forth? 2) Does it perform well? 3) Were all project objectives achieved? 4) Can the financial benefits be quantified? Was the necessary basic data saved from the old environment to be compared to results in the new environment? 5) Do these results measure up to the commitments made in the financial business case used to justify the project? 6) Is the design of the product thoroughly documented and maintainable? 7) Have project requirements for all constituencies been satisfied? |
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*Uninvolved Users/Customers *Poorly Defined End Products *Scope and the Multiplication of Interfaces *Uncontrolled Changes *Undisciplined Management System *Inappropriate Focus on Technology *Assuming 100% Availability of Committed Resources *Poor Scheduling |
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| How long should the forecast be? |
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| As long as the longest lead time for the thing to be planned. |
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| finished goods (such as automobiles) and replacement parts (such as replacement tires) need to be forecast. |
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| – component parts (such as tires included as original equipment) are derived from demand for their parent items. |
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Moving averages Weighted Moving Averages Exponential Smoothing Decomposition |
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| Forecast Accuracy and Bias |
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Forecast accuracy measures how far, on the average a forecast is removed from actual demand.
Forecast bias measures the tendency of the forecast to be systematically either too high or too low |
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| consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. |
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| Objective of a supply chain |
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| The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request. For most commercial supply chains, value will be strongly correlated with supply chain profitability. |
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| Supply chain strategy or design |
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| Strategic decisions made by companies include the location and capacities of production and warehousing facilities, products to be manufactured or stored at various locations, modes of transportation to be made available along different shipping legs, and type of information system to be utilized |
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| Planning includes decisions regarding which markets will be supplied from which locations, the planned building of inventories, the subcontracting of manufacturing, and the replenishment and inventory policies to be followed. |
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| The goal of supply chain operations is to implement the operating policies in the best possible manner |
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| How is strategic fit achieved? |
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Understanding the customer
Understanding the supply chain
Achieving strategic fit |
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| Product Life cycle attributes |
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Demand has become more certain Margins are lower due to an increase in competitors and more competitive pressure Price becomes a significant factor in customer choice |
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| Obstacles to achieving strategic fit |
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Increasing variety of products Decreasing product life cycle lengths Increasingly demanding customers Fragmentation of supply chain ownership Globalization Difficulty executing new strategies |
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| the way we see the world - not in terms of our visual sense of sight, but in terms of perceiving, understanding, interpreting. - Stephen Covey |
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